Michigan Agency with Choice has terminated its contract with Community Mental Health and Substance Abuse Services of St. Joseph County.

News of the decision was announced in a press statement this week by John Carmichael, director of business development of GT Independence, the parent company of Sturgis-based MAWC.

The decision was based primarily on the agency's refusal to reinstate services for people with disabilities, Carmichael said.

Liz O'Dell, executive director of Community Mental Health and Substance Abuse Services, said as a result of the action on behalf of MAWC, a 60-day termination clause in the contract that went into effect Oct. 1, 2012, means the agreement will expire June 10.

O'Dell said a variety of new-provider agencies will be able to fill the void left by MAWC. Still, the decision is unfortunate, she said.

"It's not the first time an agency has left us," O'Dell said, citing HOPE Network as a recent example.

A letter O'Dell sent to clients Friday details the state of the contract with MAWC. In it, O'Dell stated "as the responsible agency for your continued community mental health-service needs, CMHSAS/SJC will be continuing to authorize your services at the current level as long as you continue to meet medical-necessity criteria for the services."

The Centreville agency has a client roster of 2,700 people, which includes 235 from MAWC, O'Dell said.

CMHSAS has ability to provide services directly or through a contract, which is the arrangement it has had with MAWC.

MAWC is one of four providers that had identical contracts for services with CMH. The services are: community-living, skill building, respite and supported employment.

O'Dell said two other agencies in the past few days have indicated their willingness to offer provider services in light of the issue with MAWC.

She said negotiations will begin soon, and noted MAWC's decision does not have a financial impact on CMHSAS.

Carmichael said MAWC and CMHSAS have a major difference of opinion about client rights. Carmichael has been outspoken the past few months about a cut in the services CMHSAS has imposed on its clients.

He insists, however, he is not trying to hurt or "show up" CMHSAS.

"We believe in self-determination, full community participation and full citizenship rights for everyone we serve," Carmichael said. "We cannot continue to operate under the contract and meet those standards."

MAWC, meanwhile, will have an opportunity to contract with other governmental entities based outside St. Joseph County, Carmichael said.